FDs set for shake up after M&S move

The finance director merry-go-round is set to begin turning again. Morrisons finance director Richard Pennycook is one of the hotly tipped replacements as chief executive for the food retailer after Marc Bolland’s impending departure to take the top spot at M&S.

Pennycook, Accountancy Age Blue Chip FD of the Year in 2008, is regarded by some as the best internal candidate for the CEO role at Morrisons ­ having already held the interim chief exec post prior to Bolland’s appointment in 2006.

But he will have his work cut out for him with external candidates already flagged up, plus experienced group retail director Mark Gunter another potential for the job.

However, Pennycook’s penchant for swapping companies across sectors as a troubleshooter might make it difficult for the nomination committee to be convinced of his retail credentials, despite serving at HP Bulmer, RAC and Laura Ashley.

One close observer told Accountancy Age: “Pennycook may struggle to demonstrate his retail and commercial capability. That is an issue he will have to address at the nomination committee before any decisions are made.”

And over at M&S, while some will question FD Ian Dyson’s long-term future at the business after missing out on the top role to Bolland, Mark Freebairn of exec recruiters Odgers Berndtson believes Dyson is more “mature” than that.
“He is aware of the limitations of his role. If he wanted he would have worked with Stuart [Rose outgoing CEO] to get more operational experience. If he leaves it won’t be for that reason,” said Freebairn.

Pennycook has previously worked as group FD at breakdown cover company RAC, cider manufacturers HP Bulmer and clothing retailer Laura Ashley. He has also worked as chief executive of Welcome Break Holdings. The terms of Bolland’s contract means he cannot poach former colleagues until 2011.

Other contenders for the CEO role at Morrisons include Waitrose chief executive Mark Price; chief merchandising officer at Asda Darren Blackhurst; Tesco’s commercial director Richard Basher; and Tesco’s head of US operations Tim Mason.

However analysts claim they could be waiting until Sir Terry Leahy, Tesco CEO, announces his retirement to make a play for that job.